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The Trade Desk (TTD) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, The Trade Desk (TTD - Free Report) closed at $207.79, marking a -1.4% move from the previous day. This change lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 0.23%.

Coming into today, shares of the digital-advertising platform operator had gained 12.73% in the past month. In that same time, the Computer and Technology sector gained 6.02%, while the S&P 500 gained 4.87%.

TTD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.25, down 26.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $116.98 million, up 36.54% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.56 per share and revenue of $640.48 million, which would represent changes of -5.19% and +34.19%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TTD. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TTD currently has a Zacks Rank of #3 (Hold).

Digging into valuation, TTD currently has a Forward P/E ratio of 82.22. Its industry sports an average Forward P/E of 36.36, so we one might conclude that TTD is trading at a premium comparatively.

Meanwhile, TTD's PEG ratio is currently 4.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services industry currently had an average PEG ratio of 3.58 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TTD in the coming trading sessions, be sure to utilize Zacks.com.


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